Thursday, March 28, 2019

Voces de la Frontera Rejects City of Milwaukee $450K Reduced Offer For Former Forest Home Library Building

Voces de la Frontera Board has rejected to purchase the former Forest Home Library after Milwaukee City officials went out of their way to reduce the real estate property value of the building by $200,000 from its original selling price, according to Milwaukee City records.

By H. Nelson Goodson
Hispanic News Network U.S.A.

March 28, 2019

Milwaukee, WI - On Thursday, Hispanic News Network U.S.A. (HNNUSA) has learned that the City Attorney's Office was notified last week by an attorney representing Voces de la Frontera (VDLF) that they won't be purchasing the former Forest Home Library building located at 1432 W. Forest Home Ave. in Milwaukee's Southside. In November 2018, the Milwaukee Department of City Development (DCD) had given VDLF a deadline to respond for the final ownership signature to purchase the vacant building, but VDLF failed to respond on the deadline and finally the DCD received confirmation that VDLF has decided to forego the purchase. The original real estate property sale was offered at $650,000, but then Lyon Realty, as a Broker agent representing VDLF negotiated for the City to reduce the selling price by $200,000. The Milwaukee Common Council approved the deal to sell VDLF the building for $450,000 and Milwaukee Mayor Tom Barrett had also approved the sale. VDLF didn't even have to pay the down percentage payment to proceed with the contract sale as required in other City property sales. If the contract fails to proceed, the City keeps the down payment and the realtor involved won't get the commission paid by the City and not the buyer, according to the City's policy. A real estate broker is required to be involved in all City property sales.
In this case, HNNUSA learned that the City Attorney's Office took over the negotiation property sale with VDLF and the DCD was not involved in the final stages of the sale ending with no sale. 
VDLF has not released any information regarding its decision not to proceed with the purchase of the former Forest Home Library building after City officials did everything possible to save VDLF at least $200,000 from the original price of $650,000. 
HNNUSA also learned that VDLF in November had been approved for a $550,000 loan by a community investment lender in Wisconsin. 
In 2015, according to the IRS Form 990 annual information return and ProPublica, Christine Neumann-Ortiz, the Executive Director of Voces de la Frontera, an immigrant and workers rights non-profit organization earned a yearly salary of nearly $137,000.
It also showed, that VDLF reported a total revenue of $673,005 and had a total functional expenses of $648,246 with a net income of $24,759, according to ProPublica and IRS records.
In 2016, VDLF showed a deficit according to their IRS 990 form, which showed a total revenue of $727,384 and total functional expenses of $748,645 with a net income of -$21 261 and the Executive compensation was $115,406.
The City placed the former Forest Home Library vacant building back on the market for $650K.

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